In late 2021 the Cyprus Securities and Exchange Commission (CySEC) released its Directive for the register of crypto asset services providers in Cyprus (available here), as per the relevant provisions of the Prevention and Suppression of Money Laundering and Terrorist Financing Law in Cyprus (AML Law), as well as its relevant Policy Statement on the Registration and Operations of Crypto-Asset Services Providers (available here).
Crypto Asset Services Providers (CASPs) that provide services in or from Cyprus, must formally register with CySEC. CASPs established in the EEA that are already registered with one or more EEA National Competent Authorities for AML/CFT purposes, must submit a notification to CySEC in relation to all services or activities undertaken or intended to be undertaken in Cyprus prior to the commencement thereof.
AML Law defines a CASP as a person providing one or more of the services listed below:
- exchange between crypto-assets and fiat currency
- exchange between crypto-assets
- administration, transfer of ownership, transfer of site, holding, and/or safekeeping, including custody, of crypto-assets or cryptographic keys or means enabling control over crypto-assets
- offering and/or sale of crypto-assets, including the initial offering
- participation and/or provision of financial services related to the distribution, offering and/or sale of crypto-assets, including the initial offering
In Cyprus the applicable regulatory framework for CASPs is comprised of:
- The AML Law;
- The CySEC Directive for the register of crypto asset services providers;
- The CySEC directive for the prevention and suppression of money laundering and terrorist financing
For further guidance on the above and/or for any other information concerning CASPs and related services, please feel free to contact us as our firm’s specialised team is always ready to address your needs and provide relevant support.
